Powers of Deduction

For those weighed down by large mortgage payments, there are ways to save money when next year's tax season arrives; beekeeping, anyone?

By

Anya Martin

April 17, 2014 7:13 p.m. ET

One rueful lesson of tax season: Some deductions require lots of advance planning. Homeowners willing to do the legwork now can find some creative ways to lessen their tax bills next year.

Jumbo-mortgage holders can only deduct annual interest payments on up to $1 million of debt that they take to buy, build or improve a home. They can also deduct interest on up to $100,000 of equity-line or equity-loan debt.